Building DeFi on BNB Smart Chain (BSC): The World’s Number One Layer 1 by DAU

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In this blog, we’ll explore why BSC, the governance chain of BNB Chain, is an ideal chain for DeFi protocols and for issuing assets. Looking at its unique features, strengths and mature infrastructure, we’ll delve into the powerful projects building on BSC that showcase the diversity of DeFi in the network.

BSC Ecosystem Stats 

With over 1.3 million users, BSC has established itself as the largest Layer 1 (L1) blockchain by daily active users (DAU). Its robust infrastructure, demonstrated by its stability during its all-time high (ATH) of 32 million daily transactions with a peak throughput of 2,000 transactions per second (TPS) surpassed the industry-wide benchmark for daily transactions  across all EVM-compatible blockchains. 

Its high-performance infrastructure and ability to process 5K TPS coupled with an average transaction cost of $0.03 — the lowest gas fee of any L1 — creates an optimal and accessible environment for DeFi projects to thrive.

BSC Advantages

BSC DeFi Ecosystem

BSC is ranked as the third-largest L1 protocol by market capitalization and TVL in the DeFi ecosystem. Additionally, it has the second highest number of DeFi protocols on its network of all chains. This includes an array of DeFi protocols from lending and liquid staking to DEXs and restaking. As a result, projects building on BSC can seamlessly integrate with established DeFi protocols in the ecosystem. 

In 2023, BSC not only demonstrated its capacity to handle heightened activity, with daily transactions on the network experiencing a substantial 35% year-over-year increase but also saw gas fees burned in BNB witness a 21% increase between Q3 and Q4 2023. This reflects high network activity and represents a critical metric for DeFi suitability. 

As highlighted in the BNB Chain 2024 Outlook, BSC’s DeFi ecosystem achieved a TVL of $4.6 billion by the end of 2023, representing a significant 33% quarter-over-quarter increase in DeFi TVL. BSC gas limit stands at 140M, surpassing Ethereum’s capacity by 4.6 times. 

BSC APY landscape

BSC also has a vibrant APY landscape, offering competitive APY opportunities for users and the wider DeFi community.*

In Closing

BSC has firmly positioned itself as an ideal choice for DeFi protocols, thanks to its advanced and reliable infrastructure. Boasting over 1.3 million daily users, BSC’s stability, high throughput, and low transaction costs create an optimal environment for DeFi growth where a range of diverse protocols can flourish. Highlighted by attractive APYs and a culture of collaboration, BSC enables projects to collaboratively pioneer the next wave of DeFi innovation.

*This is not financial advice. Please be aware that APY is dynamic and subject to change.